Kantox currency update: yen and Swiss franc rise amid sabre rattling
The yen and the Swiss franc have appreciated against the rest of the major currencies, favoured by their safe-haven condition, with investors risk averse mood amid growing fears of a conflict between EE.UU. and North Korea.
The dollar has remained practically flat over the last sessions, with the market awaiting Fed speakers and Friday’s Consumer Prices Index data to confirm whether the strong momentum in the labour market would reactivate the Fed’s plan of three rate hikes for 2017.
EUR/USD steady above 1.1700. Euro reversal from 1.1900 highs last week remains limited, so far above 1.1700. The common currency is still favoured by the political uncertainty in the U.S, and Brexit fears in the UK. At London market opening times, the EUR/USD is trading at 1.1725.
GBP/USD: consolidates below 1.3000. The pound remains weak on the back of reports from UK newspapers about the tough climate of the Brexit negotiations with the EU. Sterling’s recovery attempt from 1.2945 lows was short-lived and the pair has returned below 1.3000. At London market opening times, the GBP/USD is trading at 1.2975.
USD/JPY: hits 7-week lows at 109.55. The dollar depreciated for second consecutive day on Wednesday, with the market concerned about the escalating tensions in North Korea. At London market opening times, the USD/JPY is trading at 109.95.
In the Calendar Today
At 08:30 GMT National Statistics will release UK’s manufacturing production figures. Factory output has contracted in four of the last five months and has been one of the reasons behind the deterioration of UK GDP growth expectations. Another negative reading might increase negative pressure on the pound.
At 12:30 GMT the U.S. weekly jobless claims will offer some insight about the strength of U.S. labour market and might have s moderate impact on the dollar.
At 14:00 GMT we will be attentive to U.S. Fed member William Dudley speech. Dudley, one of the hawks of the committee, might revive hopes of an interest rate hike over the coming months, which would be positive for the dollar.
08:30 GMT U.K: Manufacturing Production (YoY) (Jun)
Prev: -0.2% Cons: 0.0%
12:30 GMT U.S: Weekly Jobless Claims
Prev: 240K Cons: 240K
14:00 GMT FED: William Dudley’s Speech